Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Northside Properties, Inc. under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Northside Properties, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of Northside Properties, Inc. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Northside Properties, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.NOTE C - LOAN GUARANTEEThe U.S. Department of Housing and Urban Development (HUD) guaranteed the mortgage note maintained by Northside Properties, Inc. Under the terms of the loan guarantee, Northside Properties, Inc. must comply with the rules and regulations established by HUD. The mortgage note is administered directly by Northside Properties, Inc., and balances and transactions relating to this program are included in Northside Properties, Inc.'s basic financial statements. The outstanding mortgage at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the mortgage outstanding at June 30, 2022 is $2,776,187.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were $2,776,187.